How Much Is Michigan Car Insurance?

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  • ClearCover $108/mo

    2018 Honda Cr-V - MI

  • Infinity $67/mo

    2003 Jeep Liberty - MI

  • Foremost Auto $121/mo

    2006 Chevrolet Trailblazer - MI

  • Mercury $171/mo

    2014 Chevrolet Spark - MI

  • General $41/mo

    2004 Jeep Grand Cherokee - MI

  • Safeco $96/mo

    2015 Chevrolet Equinox - MI

  • Infinity $85/mo

    2013 Chevrolet Malibu - MI

  • Metlife $30/mo

    2003 Gmc Sonoma - MI

  • Safe Auto $78/mo

    2010 Cadillac Cts - MI

  • Dairyland $68/mo

    2001 Ford F150 - MI

  • 21st Century $84/mo

    2015 Ford Mustang - MI

  • Mercury $184/mo

    2017 Chevrolet Silverado - MI

Affordable Car Insurance in Michigan

It may only be the tenth most populous state and a pivotal place in the history of the automobile industry, but Michigan still manages to have the highest average car insurance rates in the nation. The variety of coverage types mandated by the state plays a part, as does a high in-state vehicle theft rate—even 7 times the national average in Detroit. The perils of driving in lake-effect snow coming off the Great Lakes contributes, as well.

While many factors drive up rates in Michigan, and the state’s auto insurance rules are unique and a bit confusing (especially if you’re new to the state), SmartFinancial is here to help. We walk you through the basics of what you need to know below, and our unbiased, carrier-neutral information makes it easy to hone in on the right coverage at the right price.

Michigan Car Insurance

Cheapest Auto Insurance Rates in Michigan

Carriers look at multiple variables when determining your insurance rate. Your age, location, driving history, and state requirements are all factors in determining the price you pay. We used our in-house reporting to determine the companies that offer the cheapest car insurance rates in Georgia. Metropolitan came in with the lowest rate currently available in Michigan at $86.72 per month. Followed by SECURA Insurance at $89.98 per month and Hastings Mutual Insurance Co at $126.64 per month.

Lowest Rate

Metropolitan

$86.72
Highest Rate

Encompass

$785.36
Average Rate

Michigan

$166
RankCompanyAvg monthly rate
1 Metropolitan $86.72 / month
2 SECURA Insurance $89.98 / month
3 Hastings Mutual Insurance Co $126.64 / month
4 USAA $152.47 / month
5 MEEMIC Insurance Company $165.83 / month
6 Farm Bureau Ins of MI $168.91 / month
7 Auto-Owners Insurance Co $183.98 / month
8 Pioneer State Mutual Ins Co $192.93 / month
9 Travelers $197.53 / month
10 Westfield $198.10 / month
11 GMAC Insurance Group $216.27 / month
12 Michigan Millers Mutual $236.54 / month
13 Progressive $237.44 / month
14 Frankenmuth Mutual $246.44 / month
15 Chubb $255.33 / month
16 Everest National Insurance Company $259.62 / month
17 GEICO $260.51 / month
18 Esurance $286.92 / month
19 Nationwide $304.17 / month
20 Wolverine Mutual $332.60 / month
21 Allied $335.31 / month
22 Donegal Mutual Insurance Co $339.47 / month
23 Allmerica $359.85 / month
24 State Farm $362.35 / month
25 Safeco Insurance Co. $398.77 / month
26 Mercury $402.58 / month
27 Grange Mutual $415.56 / month
28 Auto Club Group $452.10 / month
29 Bristol West $463.15 / month
30 Hanover $540.88 / month
31 Allstate $699.37 / month
32 Farmers $744.92 / month
33 Encompass $785.36 / month

Top 10 Cheapest Cities for Car Insurance

If you are lucky enough to live in one of these cities you are likely paying some of the lowest car insurance rates available in Georgia. According to our data, Holland comes in at the cheapest at only $138.04 per month. Other cities that made the top 10 list include Ann Arbor at $151.40 per month, Bay City at $152.23 per month, and Muskegon at $157.56 per month.

RankCityAvg monthly rate
1 Holland, MI$138.04 / month
2 Ann Arbor, MI$151.40 / month
3 Bay City, MI$152.23 / month
4 Muskegon, MI$157.56 / month
5 Grand Rapids, MI$160.93 / month
6 Kalamazoo, MI$162.35 / month
7 Jackson, MI$166.17 / month
8 Saginaw, MI$169.79 / month
9 Lansing, MI$170.16 / month
10 Benton Harbor, MI$171.17 / month

Top 10 Most Expensive Cities for Car Insurance

These top 10 cities ranked as the most expensive places in Georgia for car insurance. Location is a big factor when determining the price you pay for car insurance and these cities came in at the top. Dearborn is the most expensive city in Georgia at $326.36 per month. Second and third place goes to Hamtramck at $317.57 per month and Detroit at $314.44 per month.

RankCityAvg monthly rate
1 Dearborn, MI $326.36 / month
2 Hamtramck, MI $317.57 / month
3 Detroit, MI $314.44 / month
4 Highland Park, MI $297.44 / month
5 Redford, MI $278.17 / month
6 Dearborn Heights, MI $277.92 / month
7 Sterling Heights, MI $258.07 / month
8 Harrison Township, MI $251.30 / month
9 Clinton Township, MI $249.95 / month
10 Southfield, MI $248.94 / month

Average Quotes by Top Companies

Rates can vary wildly from company to company. Here is a quick look at a few rates from some of the top car insurance companies in Michigan.

Compare Recent Car Insurance Quotes in Michigan

SmartFinancial helps thousands of drivers every day find and compare the best car insurance rates available. Here is a list of some recent quotes that we recently found for drivers in Michigan.

CompanyMonthly rateVehicle
ClearCover $1082018 Honda Cr V
Infinity $672003 Jeep Liberty
Foremost Auto $1212006 Chevrolet Trailblazer
Mercury $1712014 Chevrolet Spark
General $412004 Jeep Grand Cherokee
Safeco $962015 Chevrolet Equinox
Infinity $852013 Chevrolet Malibu
Metlife $302003 Gmc Sonoma
Safe Auto $782010 Cadillac Cts
Dairyland $682001 Ford F150
21st Century $842015 Ford Mustang
Mercury $1842017 Chevrolet Silverado

Methodology

The statistics listed on this page are from our own in house reporting. We track and record quotes that carriers have provided based on various criteria. The rates and averages shown on this page should only be used as an estimate.

Minimum Car Insurance Coverage in Michigan

Michigan is a no-fault state, requiring drivers to carry no-fault insurance. Michigan’s no-fault policy provides wage-loss benefits up to three years, unlimited medical and rehabilitation benefits, and $20 per day for replacement services if you’re injured in a collision. The state is unique in that the no-fault policy also covers damage to vehicles.

Michigan’s basic no-fault policy includes minimum amounts of coverage of $20,000 of bodily injury for each person hurt or killed in an accident, $40,000 for two or more people hurt or killed in an accident, and $10,000 for property damage in another state. However, that $10,000 in property damage liability coverage only applies to out of state claims.

Property damage that occurs inside the state is covered by property protection insurance (PPI). Michigan drivers are required to carry $1,000,000 PPI coverage. Additionally, drivers must carry PIP insurance to pay for medical expenses following a car accident. Residents can coordinate PIP insurance with health insurance, which may reduce insurance premiums.

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$20,000

Bodily injury coverage per person

Maximum payment for serious or permanent injury or death to a single person

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$40,000

Bodily injury coverage per accident

Maximum payment for serious or permanent injury or death to multiple people

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$10,000

Property damage per accident

Maximum payment for all damaged property in an accident caused by you

Although Michigan law does not require collision and comprehensive insurance, lenders generally require it before financing a vehicle. These optional coverages also provide extra financial protection in the event of an accident. If you need additional coverage to satisfy your lender or for peace of mind, factor in the extra cost when calculating the price of your loan.

Optional Coverage in Georgia

  • Uninsured Motorist
  • Mini-Tort
  • Collision
  • Comprehensive
  • Increased Residual Liability
  • Rental Car
  • Loan/Lease Gap
  • Roadside Assistance/Towing

Optional coverages are those added to a policy to provide additional protection. They are not required by law. Some exclusions will apply.

Shop smarter for car insurance by reading over our post 11 Mistakes People Make When Shopping for Auto Insurance.

Michigan Car Safety

Michigan Car Safety

We don’t mean to sound pessimistic, but accidents happen. No matter how safe and responsible a driver you are, sometimes circumstances are beyond your control. That’s why they call them “accidents.” Your car insurance coverage protects you from ending up on the hook for expenses like vehicle repair costs, medical bills, and lost wages. It’s an important—and legally mandated—safeguard.

In 2015, a traffic collision was reported every 1 minute and 46 seconds. Driver error is the primary cause of most crashes, according to the Michigan Department of State Police, although other factors are often at play. Even if you have a history of safe driving, it doesn’t mean other motorist share your regard for traffic laws and safety. Always drive defensively and carry as much insurance coverage as you can afford.

Car Safety for Michigan Kids

Michigan law requires children under 4 years to ride in an approved car seat in the back seat. This only applies to vehicles with a back seat. If all back seats are occupied by children younger than 4 years, a child of this age may ride in a car seat in the front seat of the vehicle. If the child is in a rear-facing car seat, the airbag must be turned off for the child to ride in the front.

All children must be properly restrained in a car seat or booster seat until they reach 8 years of age or 4′ 9″ tall, whichever comes first. No-back booster seats are recommended for motor vehicles with a headrest, while high-back booster seats are recommended for vehicles without a headrest. Booster seats should never be used with a lap belt only.

Always follow manufacturer instructions when installing and using car seats, and keep in mind that the back seat is safest for children under 12 years of age due to the risk of injury from airbag deployment.

For more information on transporting children safely, please refer to the Michigan State Police website.

Michigan law states that it is illegal to leave a child unattended in a car for any length of time or under any circumstance that poses an unreasonable risk of injury or harm to the child. People doing so are guilty of a misdemeanor and may face up to 93 days in jail and a fine of up to $500, or both.

If the child is harmed, imprisonment may last up to 1 year and the fine may double. If serious harm comes to an unattended child, the violation becomes a felony and is punishable by up to 10 years in jail and a fine of up to $5,000, or both. Death of a child is punishable by up to 15 years in jail and a fine of up to $10,000, or both.

Michigan considers a child to be a minor of less than 6 years of age. However, leaving a child of any age (or a pet) unsupervised in a vehicle can have serious consequences. The temperature inside a parked car can increase rapidly, posing a risk of brain damage and death. And, even though older children may be able to escape a hot vehicle, they are still at increased risk of accidental injury or stranger violence.

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297,023

Motor vehicle crashes in 2015

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963

Traffic fatalities in 2015

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9,537

Crashes involving alcohol

Driving Green in Michigan

Driving green in Michigan

Michigan offers financial incentives to be a little more eco-friendly as you drive. These can be a positive way to help preserve the environment while offsetting those above-average insurance rates.

Some of the state’s green-driver incentives include:

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Electric Vehicle Charging Incentives

Consumers Energy and Indiana Michigan Power both offer local customers incentives for switching to plug-in electric vehicles. One incentive that can save green drivers a good amount of money is reduced PEV charging rates for charging at low-demand times. Rebates for owning a plug-in vehicle may also be available to customers.

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Inspection Exemptions for Alternative Fuel Vehicles (AFVs)

Michigan is one state that does not test emissions for vehicle registration, but most cars must undergo an inspection. On the other hand, AFVs are exempt from inspection. Vehicles that may qualify for this exemption include those using compressed natural gas, electricity, diesel fuel, and propane.

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Tax Credits and Insurance Discounts

Although there are no state-level tax incentives in Michigan, residents may qualify for federal tax breaks if they own a hybrid, electric vehicle, diesel, plug-in hybrid, or alternative fuel vehicle. Additionally, many Michigan auto insurance providers offer discounts to drivers of eco-friendly cars, as well as to those who buy economy cars or drive very little each year.

Michigan Car Insurance FAQ

Michigan car insurance faq


Is my credit score a factor when obtaining car insurance in Michigan?

Yes. Insurance companies use your credit score to evaluate your risk of filing a claim. It is generally combined with other factors, such as driving record, type of car, and location to determine your insurance score and premium.

Does Michigan offer a good-driver discount?

Insurance companies in Michigan may offer a discount to good drivers. Motorist without a moving violation or at-fault accident during the past three years typically meet the criteria for good or safe driver discounts. Additionally, Michigan drivers may qualify for a variety of other discounts, including:

  • Accident-Free
  • Claims-Free
  • Teen Driver
  • Multi-Car
  • Distant Student
  • Alternative Fuel
  • Homeowner
  • Defensive Driver
  • Good Student
  • Anti-Lock Brake
  • Anti-Theft Device
  • Multiple Line
  • Passive Restraint
  • Vehicle Safety

Does Michigan allow the use of digital insurance cards?

Yes, Michigan drivers can use their phone or other mobile device to show proof of insurance when pulled over.

What happens if my coverage lapses?

You’re required to carry auto insurance in Michigan. Coverage lapses can result in misdemeanor charges, fines of up to $500, license suspension, jail for up to one year, and more.

What are Michigan's blood alcohol concentration (BAC) percentage limits under the state's driving under the influence (DUI) laws?

It’s illegal to operate a vehicle in Michigan with the following BAC percentages:

.08%+ for 21 years old or older
.04%+ for commercial vehicle drivers
.02%+ for under 21 years old

Michigan has various types of DUI charges, including Operating While Visibly Impaired (OWVI), Operating While Intoxicated (OWI), Under Age 21 Operating with Any Bodily Alcohol Content (Zero Tolerance), and Operating with Any Presence of a Schedule 1 Drug or Cocaine (OWPD).

What are the chemical test refusal penalties in Michigan?

If stopped by an officer who suspects you’re driving while impaired or intoxicated, you may be asked to undergo a Preliminary Breath Test (PBT). Failure to take this test can result in a civil infraction charge and a fine of $150 plus court costs. If you’re under 21, you’ll also have 2 points added to your record.

If arrested, you’re required to undergo a chemical test to measure your BAC and the presence of drugs in your system. Like most states, Michigan has an Implied Consent law that states all drivers have given consent to a chemical test. If you refuse this test, you may receive 6 points on your license, which will be suspended.

What are the consequences of being convicted of a DUI?

Michigan’s DUI laws require courts to decide court cases within 77 days of arrest and mandate a 6-month suspension of driving privileges, even following a first conviction. Additional penalties may include up to 1 year of jail time, community service, successful completion of a rehabilitation program, installation of an ignition interlock device, and various fines and fees. If you cause harm or death while driving under the influence, the penalties are much more severe.

Does Michigan offer driver improvement courses to reduce my insurance premium?

Driver improvement courses can help keep your insurance premiums low by preventing points from being assessed on your license following a violation. Some insurance companies may also offer discounts for voluntary completion of defensive driving courses.

Is there any way I can reduce the cost of my Michigan car insurance?

In Michigan, your credit score is given significant weight in determining your rates, so monitor your credit report for errors and work to raise a low score or maintain a high one. Coordinating your health and disability benefits with your no-fault policy will reduce your insurance rates, too. In addition, maintain a clean driving record, choosing a higher deductible, and shop around for the best rates to lower your premiums.

What is the MCCA fee?

Insured Michigan drivers must pay a fee called Michigan’s Catastrophic Claims Association fee. This unique fee makes sure that all insured drivers have unlimited medical coverage if injured in a traffic collision.

What is uninsured motorist coverage and is it required in Michigan?

This type of coverage compensates you for excess wage loss, pain, and suffering. Uninsured motorists protects you against hit and runs and accidents with uninsured drivers. Uninsured motorist insurance is optional in Michigan, but it’s highly recommended; an estimated 1 in 5 Michigan motorists illegally drive without coverage.

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